Resolution A.1014(26)

 

Adopted on 2 December 2009

(Agenda item 17(d))

 

RESULTS-BASED BUDGET FOR THE 2010-2011 BIENNIUM

 

 

A.        THE REGULAR BUDGET

 

THE ASSEMBLY,

 

RECALLING Article 15 of the Convention on the International Maritime Organization, in particular paragraphs (f) and (g) thereof concerning the functions of the Assembly in relation to the Organization’s work programme, budget and financial arrangements,

 

RECALLING FURTHER resolution A.726(17) of 7 November 1991, by which it approved a revised assessment formula for apportioning the contributions of Member States to the Organization’s budget; and adopted amendments to the Rules of Procedure of the Assembly concerning enforcement of the payment of contributions,

 

RECALLING ALSO resolution A.1011(26) of 26 November 2009, by which it approved the Strategic Plan for the Organization for the six-year period 2010 to 2015,

 

NOTING resolution A.1017(26) of 2 December 2009, by which it approved the Organization’s revised Financial Regulations which provide links to be made between the resources required and the results derived from the Organization’s Strategic Plan in the preparation of the budget estimates,

 

NOTING ALSO the provision in regulation 5.1 of the Financial Regulations concerning the use of the Working Capital Fund to finance approved appropriations pending receipt of contributions,

 

RECOGNIZING ALSO that the funds in the Working Capital Fund could be insufficient to finance the approved appropriations when exceptional and unforeseen circumstances take place pending receipt of contributions,

 

RECOGNIZING FURTHER the provision in regulation 3.8 of the Financial Regulations concerning supplementary estimates and the past practice of the Assembly in authorizing the Council to approve any necessary recalculation of the appropriations for the second year of the biennium,

 

1.         APPROVES the Organization’s results-based budget voted for the 2010-2011 biennium, as in annex 1, of Ј61,151,200, comprising an appropriation of Ј30,290,900 for 2010 and an appropriation of Ј30,860,300 for 2011;

 

2.         DECIDES that the appropriation voted above shall be financed by contributions from Member States of Ј27,748,500 for 2010 and Ј29,307,500 for 2011, after deduction of prospective income and transfers comprising:

 

(a)       reimbursements from the Trading Fund for the costs borne by the regular budget in respect of administrative backstopping support, estimated at Ј662,400 for 2010 and Ј672,800 for 2011;

 

(b)      programme support costs income from donor/trust funds, estimated at Ј300,000 in each year of the biennium;

 

(c)       miscellaneous income estimated at Ј80,000 in each year of the biennium; and

 

(d)      transitional transfers from the General Fund cash surplus of Ј1,500,000 for 2010 and Ј500,000 for 2011;

 

3.         APPROVES a total of 22.8 meeting-weeks for 2010 and 18.6 meeting-weeks for 2011, as in annex 2, and a total of 299 posts for the biennium, as in annex 3;

 

4.         AUTHORIZES the Secretary-General to draw upon funds in the Trading Fund, the Headquarters Capital Fund, the Termination Benefit Fund and the Technical Co-operation Fund to finance the approved appropriations. Advances made from these Funds to finance budgetary appropriations during a financial period shall be reported to the Council immediately and reimbursed to each respective Fund as soon as, and to the extent that, income is available for that purpose;

 

5.         AUTHORIZES the Council, at its relevant sessions, to review the approved results-based budget and, if it decides it is necessary, to approve any transfers between strategic results, including appropriate recalculation of the budget estimates and assessment figures, in the light of the budgetary and exchange rate situation prevailing at that time;

 

6.         INVITES the attention of the Council to the above-mentioned provisions;

 

7.         REQUESTS the Secretary-General to ensure their application while endeavouring to effect the maximum economies in the budget;

 

8.         REQUESTS the Council, should there be any appreciable changes in annual contribution receipts, to undertake a review of the Organization’s financial framework and report its outcome to the Assembly.

 

B.        WORKING CAPITAL FUND

 

THE ASSEMBLY,

 

RECALLING resolution A.363(IX) of 14 November 1975, by which the Working Capital Fund was established in the amount of $250,000 as of 1 January 1976 by means of advances assessed on Member States,

 

RECALLING FURTHER resolutions A.508(XII), A.552(13), A.633(15)B, and A.837(19), by which the level of the Working Capital Fund was increased through transfers from other Funds,

 

NOTING that, after taking into account payments by new Members, the level of the Working Capital Fund presently stands at Ј2,005,977,

 

1.         DECIDES that new Members shall be assessed for their advances to the Working Capital Fund on the basis only of the part assessed on Members on 1 January 1976;

 

2.         AUTHORIZES the Secretary-General:

 

(a)        to advance from the Working Capital Fund such sums as may be necessary to finance the appropriations for the years 2010 and 2011 pending receipt of contributions from Members – amounts so advanced shall be reimbursed to the Working Capital Fund as soon as contributions are available;

 

(b)        to advance from the Working Capital Fund such sums as may be necessary to finance additional expenditure arising from exchange rate movements during 2010 and 2011 away from the rate adopted for calculation of the appropriation – sums so advanced shall be returned to the Working Capital Fund as soon as possible and in a manner decided on by the Council; and

 

(c)        with the prior agreement of the Council, to advance such sums as may be necessary to meet unforeseen or extraordinary expenses arising during the biennium 2010-2011, provided that such expenses are of a clearly exceptional nature and relate specifically to the work programme of the Organization and that the Council is assured that the relevant expenditure cannot be met by appropriate transfer action within the total budget approved for a calendar year;

 

3.         REQUESTS the Secretary-General to report to the Council and the Assembly all advances made under the present resolution, and the relevant circumstances, and to submit supplementary estimates for reimbursement to the Working Capital Fund of advances made from the Fund to meet unforeseen or extraordinary expenses.

 

C.        TRADING FUND

 

THE ASSEMBLY,

 

RECALLING the United Nations General Assembly resolution 60/283 of 17 August 2006 adopting the International Public Sector Accounting Standards (IPSAS),

 

RECALLING ALSO the adoption of resolution A.1017(26), through which it adopted revised Financial Regulations to give effect to a change in the Organization’s accounting standards from the United Nations System Accounting Standards to IPSAS, from 1 January 2010,

 

RECOGNIZING that this change in applicable accounting standards has a consequential impact on the framework of financial control and reporting and thus provides for greater transparency in the Organization’s finances,

 

RECALLING that regulation 6.7 of the Organization’s Financial Regulations provides that the Secretary-General or the Assembly may establish such trust, reserve and special funds, as may be required from time to time in order to deliver results in pursuance of the Organization’s Strategic Plan,

 

RECALLING ALSO that the Council, at its 101st session, approved in principle the reconstitution of the Printing Fund as the Trading Fund, to provide for enhanced transparency under IPSAS,

 

RECOGNIZING the need to ensure that the Technical Co-operation Fund should continue to be replenished in such a manner as to ensure the proper delivery of the Organization’s Integrated Technical Co-operation Programme,

 

HAVING CONSIDERED the recommendations of the Council at its twenty-fifth extraordinary session,

 

1.         DECIDES to establish the Trading Fund, which shall be administered in accordance with the Organization’s Financial Regulations;

 

2.         APPROVES the initial terms of reference for the operation of the said Fund which include a provision whereby, at the beginning of each year, the Secretary-General shall transfer, unless otherwise directed by the Assembly, not less than 75% of the net annual cash surplus in the Fund to the Technical Co-operation Fund; 10% to the Headquarters Capital Fund; and 1.5% to the Training and Development Fund, as set out in annex 4;

 

3.         DECIDES ALSO that the Printing Fund shall be closed on 31 December 2009 and that all its assets and liabilities shall be transferred to the Trading Fund on 1 January 2010;

 

4.         ALSO DECIDES that, notwithstanding the closure of the Printing Fund, the net in-year surplus of the Printing Fund realized in 2009 shall be distributed in 2010 to the Organization’s other Funds at such a percentage as approved in resolution A.991(25), namely, 75% to the Technical Co-operation Fund; 15% to the Headquarters Capital Fund; 8.5% to the Termination Benefit Fund; and 1.5% to the Training and Development Fund;

 

5.         REQUESTS the Secretary-General to keep under review the terms of reference for the operation of the Trading Fund; and to report to the Council as and when necessary;

 

6.         APPROVES the Trading Fund budget voted for the 2010-2011 biennium, as shown in Table 1 of annex 5, of Ј11,605,600, comprising an appropriation of Ј5,757,400 for 2010 and an appropriation of Ј5,848,200 for 2011;

 

7.         APPROVES a total of 36 posts for the biennium, as shown in annex 3;

 

8.         REVOKES resolutions A.101(IV), A.200(VI) and A.307(VIII).

 

D.        HEADQUARTERS CAPITAL FUND

 

THE ASSEMBLY,

 

RECALLING resolution A.778(18) of 4 November 1993, through which the Assembly decided to establish the Headquarters Capital Fund by transferring the balance held in the Headquarters Installation Fund and by transfers from the Printing Fund of Ј500,000 in 1994 and Ј250,000 in 1995,

 

RECALLING ALSO that the Headquarters Capital Fund was established with effect from 1 January 1994 with the primary purpose of meeting the capital expenditure necessary for efficient operation of the Organization and for fulfilling the Organization’s liabilities under the terms of the lease for the Headquarters building agreed between the Organization and the United Kingdom Government, and with the scope to include:

 

(a)       expenditure on repairs to, or replacement of, apparatus and machinery for the Headquarters building (other than regular, planned maintenance costs);

 

(b)      purchase and installation of office automation equipment, office furniture and equipment, telecommunications equipment and document production machinery;

 

(c)       official vehicles;

 

(d)      other items of capital equipment which relate to the primary purpose of the Fund; and

 

(e)       expenditure on the design, installation and implementation of office automation systems, including related training needs,

 

RECALLING FURTHER that the Fund has enabled the planning for, and implementation of, major capital programmes since 1994, notably in respect of office automation and communications necessary for improving the Organization’s efficiency and effectiveness,

 

NOTING that the Council, at its ninety-sixth session in June 2006, agreed in principle to the upgrading of the Organization’s existing financial and reporting system, including the replacement of the Human Resources (HR) and Payroll systems,

 

RECALLING FINALLY the Host Government’s agreement to share the costs of the Headquarters refurbishment works according to a 90:10 formula based on a total initial cost estimated to be Ј46 million, of which the Organization’s share of Ј4.6 million is to be paid in agreed instalments by 2011,

 

NOTING ALSO that the Fund will be replenished from time to time by such transfers from other Funds of the Organization as may be approved by the Assembly or by the transfer of such funds from the regular budget as may be approved by the Assembly,

 

1.         APPROVES the Headquarters Capital Fund expenditure voted for the 2010-2011, as shown in Table 2 of annex 5, of Ј3,396,200, comprising an appropriation of Ј1,713,000 for 2010 and an appropriation of Ј1,683,200 for 2011;

 

2.         DECIDES that the income arising from investments of the Headquarters Capital Fund shall continue to be credited to the Headquarters Capital Fund.

 

E.         TERMINATION BENEFIT FUND

 

THE ASSEMBLY,

 

RECALLING resolution A.837(19) of 23 November 1995, by which the Assembly decided to establish the Termination Benefit Fund with an initial transfer of Ј900,000 from the cash surplus of the General Fund on 1 January 1996, in order to meet the costs associated with payment of termination benefit and repatriation grants to the staff of the Organization,

 

RECALLING ALSO resolution A.906(22) of 29 November 2001, which widened the scope of the Fund to allow the financing of the additional costs of temporary assistance required to replace staff on long-term sick leave,

 

RECALLING FURTHER resolution A.991(25) of 29 November 2007, by which the Assembly further widened the scope of the Fund to include the financing and accounting of the liabilities related to the costs of accrued annual leave and After Service Health Insurance (ASHI), in preparation for UN system-wide implementation of IPSAS,

 

NOTING that the Fund will be replenished from time to time by such transfers from other Funds of the Organization as may be approved by the Assembly or by the transfer of such funds from the regular budget as may be approved by the Assembly,

 

1.         APPROVES the Termination Benefit Fund budget voted for the 2010-2011 biennium, as shown in Table 3 of annex 5, of Ј1,726,400, comprising an appropriation of Ј874,800 for 2010 and an appropriation of Ј851,600 for 2011;

 

2.         DECIDES that income arising from investments of the Termination Benefit Fund shall be credited to the Termination Benefit Fund.

 

F.         TRAINING AND DEVELOPMENT FUND

 

THE ASSEMBLY,

 

RECALLING resolution A.906(22) of 29 November 2001, by which the Assembly decided to establish the Training and Development Fund with an initial transfer of Ј200,000 from the surplus of the Printing Fund on 1 January 2002, in order to finance organizational strengthening initiatives,

 

NOTING the need to ensure that the knowledge and skills of new and existing staff are maintained up to date,

 

NOTING ALSO that the Fund will be replenished from time to time by such transfers from other Funds of the Organization as may be approved by the Assembly or by the transfer of such funds from the regular budget as may be approved by the Assembly,

 

1.         APPROVES the Training and Development Fund budget voted for the 2010-2011 biennium, as shown in Table 4 of annex 5, of Ј240,000, comprising an appropriation of Ј119,400 for 2010 and an appropriation of Ј120,600 for 2011;

 

2.         DECIDES that the income arising from investments of the Training and Development Fund shall be credited to the Training and Development Fund.

 

G.        TECHNICAL CO-OPERATION FUND

 

THE ASSEMBLY,

 

RECALLING resolution A.593(14) of 20 November 1985, by which the Technical Co-operation Fund was established, and which resolved that the interest should be used to assist the Technical Co-operation Programme of the Organization in accordance with proposals approved by the Assembly,

 

RECALLING ALSO resolution A.837(19) of 23 November 1995, by which the funds from the Technical Co-operation Fund are drawn down and converted into pounds sterling for the application of technical co-operation activities, and which enables the level of the funds to be increased through donor contributions and by such transfers from other funds of the Organization as may be approved by the Assembly,

 

NOTING that, in accordance with rule 14 of the Rules of Operation of the Technical Co-operation Fund, the Secretariat reports biennially to the Technical Co-operation Committee and the Council on progress made in the delivery of the Integrated Technical Co-operation Programme (ITCP) components that are being supported with the Fund resources,

 

RECALLING FURTHER resolution A.993(25) of 29 November 2007, by which Member States were invited to consider voluntarily donating to the Technical Co-operation Fund a part, and if possible all, of their interest earnings accumulated under the Contributions Incentive Scheme,

 

HAVING REGARD TO THE FACT that the Council endorsed, at its 102nd session, allocations from the Fund of US$14,000,000 to support the proposed activities under the ITCP for the 2010-2011 biennium, according to the recommendation of the Technical Co-operation Committee at its fifty-ninth session,

 

1.         APPROVES the Technical Co-operation Fund budget voted for the 2010-2011 biennium, as shown in Table 5 of annex 5, of Ј8,484,700 (equivalent to the planned figure in US dollars of 14,000,000), comprising an appropriation of Ј4,011,000 for 2010 and an appropriation of Ј4,473,700 for 2011;

 

2.         DECIDES that the income arising from investments of the TC Fund shall continue to be credited to the Technical Co-operation Fund;

 

3.         REQUESTS the Secretary-General to submit programmes of technical co-operation activities, indicating outputs and end results arising from the use of the Fund’s resources, to the Technical Co-operation Committee during the 2010-2011 biennium;

 

4.         INVITES Member States to consider voluntarily donating to the Technical Co-operation Fund a part, and if possible all, of their interest earnings accumulated under the Contribution Incentive Scheme.

 

ANNEX 1
Results-based budgets for the 2010-2011 biennium

 

 

 

ANNEX 2
List of meeting-weeks approved for 2010 and 2011

 

 

1/ LEG recommended to the Council that it should hold one session in the latter half of 2010 (LEG 97) and one session in 2011(LEG 98).

 

2/ As recommended jointly by the MSC and the MEPC, two sessions of DE are planned for 2010.

 

3/ Diplomatic conferences planned in 2010: on the International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea (HNS Convention); and the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers ( STCW Convention).

 

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ANNEX 3
List of posts approved for 2010 and 2011

 

 

* The posts shown under the regular budget are rearranged (including those previously non-established) following establishment of a Trading Fund.

 

**The posts associated with the commercial activities are now all rearranged under the Trading Fund.